R400m Vanderbijl mall to open in 2006

Posted On Monday, 01 November 2004 02:00 Published by eProp Commercial Property News
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The R400-million Vaal Mall shopping centre in Vanderbijlpark will open its doors early in 2006.

Patrick FlanaganCurrent stakeholders are Ka- giso Property Holdings (45%), Flanagan & Gerard Property Consultants (45%) and Urban Land Mar-keting (10%). Following completion of the project, 20% will change hands to a black economic empowerment grouping.

"Vaal Mall will address the immediate shortcomings of the retail infrastructure within the trade area, which has resulted in an estimated R300-million of the local consumer spend haemorrhaging to other areas. It will offer a sound platform for future growth in consumer spending," says Patrick Flanagan of Flanagan & Gerard.

The anchor tenants at the 45 000 m2 regional mall on Barrage road will be Pick ’n Pay, Woolworths, Edgars and Game.

Earthworks for the project will be concluded by year-end, says Kagiso Property Holdings’ Marius Muller.

"The tender for the main contractor will go out later this year, with work starting early in the new year." The project is expected to provide 1 500 jobs during construction, and 600 to 800 permanent job opportunities, says Flanagan. Two facilitators have been appointed to enable the supply of local labour and materials.

Vaal Mall positions itself to primarily cater for the middle-class residents of Vanderbijlpark and Sasolburg, as well as parts of Vereeniging, Sebokeng, Evaton and Sharpeville. The secondary trade area is to include Deneysville, the remainder of Vereeniging, Kroonstad, Parys and the surrounding agricultural communities to the south and west.

The main feeder area houses indus-trial giants Iscor and Sasol, which have both announced plans to spend money on increasing capacity.

Despite a spate of retrenchments in recent years, in particular at Iscor, Muller is positive about the project’s economic outlook.

"We did a retail and economic study, and the uptake looks good." Flanagan says the area’s population is about 1,2-million, with the official unemployment rate at 51%. He believes he will coax sufficient feet through the centre, especially those with their own transport. The mall will have a knock-on effect on the Vanderbijlpark central business district (CBD); Woolworths, for example, will close its doors in the CBD.

"We believe the CBD will reinvent itself. "We have offered our input into this process. The CBD is likely to now attract those consumers using public transport." However, the mall will also house a taxi rank.

Last modified on Thursday, 22 May 2014 16:18

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